<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______________________ to ______________________
Commission file number: 0-23885
WILLOWBRIDGE STRATEGIC TRUST
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-7075398
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One New York Plaza, 13th Floor, New York, New York 10292
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
Indicate by check CK whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _CK_ No __
<PAGE>
<PAGE>
Part I. FINANCIAL INFORMATION
ITEM 1--FINANCIAL STATEMENTS
WILLOWBRIDGE STRATEGIC TRUST
(a Delaware Business Trust)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $36,935,868 $46,416,620
Net unrealized gain on open commodity positions 629,369 2,451,210
Options, at market 39,471 362,402
------------- ------------
Net equity 37,604,708 49,230,232
Other receivable 25,503 3,218
------------- ------------
Total assets $37,630,211 $49,233,450
------------- ------------
------------- ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Redemptions payable $ 1,189,884 $ 1,385,332
Management fees payable 94,075 123,083
------------- ------------
Total liabilities 1,283,959 1,508,415
------------- ------------
Commitments
Trust capital
Limited interests (430,597.320 and 458,613.680 interests
outstanding) 35,982,745 47,217,112
General interests (4,350 and 4,933.397 interests outstanding) 363,507 507,923
------------- ------------
Total trust capital 36,346,252 47,725,035
------------- ------------
Total liabilities and trust capital $37,630,211 $49,233,450
------------- ------------
------------- ------------
Net asset value per limited and general interest ('Interests') $ 83.56 $ 102.96
------------- ------------
------------- ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
2
<PAGE>
<PAGE>
WILLOWBRIDGE STRATEGIC TRUST
(a Delaware Business Trust)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
-------------------------------- ---------------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on commodity
transactions $ (6,123,327) $ 1,719,452 $(6,631,692) $ (910,687)
Change in net unrealized gain on
commodity positions (1,966,009) 682,950 (1,742,279) (3,777,250)
Interest income 1,048,944 1,036,723 468,260 561,235
---------------- ------------ ----------- ------------
(7,040,392) 3,439,125 (7,905,711) (4,126,702)
---------------- ------------ ----------- ------------
EXPENSES
Commissions 1,846,314 1,685,693 826,747 963,217
Management fees 692,486 659,447 298,198 360,128
Incentive fees -- 1,214,408 -- --
---------------- ------------ ----------- ------------
2,538,800 3,559,548 1,124,945 1,323,345
---------------- ------------ ----------- ------------
Net loss $ (9,579,192) $ (120,423) $(9,030,656) $ (5,450,047)
---------------- ------------ ----------- ------------
---------------- ------------ ----------- ------------
ALLOCATION OF NET LOSS
Limited interests $ (9,483,151) $ (123,223) $(8,940,335) $ (5,391,824)
---------------- ------------ ----------- ------------
---------------- ------------ ----------- ------------
General interests $ (96,041) $ 2,800 $ (90,321) $ (58,223)
---------------- ------------ ----------- ------------
---------------- ------------ ----------- ------------
NET LOSS PER WEIGHTED AVERAGE LIMITED
AND GENERAL INTEREST
Net loss per weighted average limited
and general interest $ (19.86) $ (.31) $ (19.23) $ (12.55)
---------------- ------------ ----------- ------------
---------------- ------------ ----------- ------------
Weighted average number of limited
and general interests outstanding 482,328 389,052 469,520 434,095
---------------- ------------ ----------- ------------
---------------- ------------ ----------- ------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN TRUST CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GENERAL
INTERESTS INTERESTS INTERESTS TOTAL
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Trust capital--December 31, 1997 463,547.077 $ 47,217,112 $507,923 $47,725,035
Contributions 49,726.311 5,359,300 27,000 5,386,300
Net loss -- (9,483,151) (96,041 ) (9,579,192)
Redemptions (78,326.068) (7,110,516) (75,375 ) (7,185,891)
------------ ------------ --------- -----------
Trust capital--June 30, 1998 434,947.320 35,982,745 363,507 36,346,252
------------ ------------ --------- -----------
------------ ------------ --------- -----------
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE>
<PAGE>
WILLOWBRIDGE STRATEGIC TRUST
(a Delaware Business Trust)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of Willowbridge Strategic Trust (the 'Trust') as of June 30, 1998 and
the results of its operations for six and the three months ended June 30, 1998.
However, the operating results for the interim periods may not be indicative of
the results expected for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements be
read in conjunction with the financial statements and notes thereto included in
the Trust's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1997.
B. Related Parties
Prudential Securities Futures Management Inc., a wholly owned subsidiary of
Prudential Securities Incorporated ('PSI'), is the managing owner of the Trust
(the 'Managing Owner'). The Managing Owner and its affiliates perform services
for the Trust which include, but are not limited to: brokerage services,
accounting and financial management, registrar, transfer and assignment
functions, investor communications, printing and other administrative services.
Except for the costs related to brokerage services, PSI or its affiliates pay
the costs of these services in addition to costs of organizing the Trust and
offering its interests as well as its routine operational, administrative, legal
and auditing fees. As described in the Annual Report, all commissions for
brokerage services are paid to PSI.
The Trust maintains its trading and cash accounts with Prudential Securities
Incorporated, the Trust's commodity broker and an affiliate of the Managing
Owner. Except for the portion of assets that is deposited as margin to maintain
forward currency contract positions, the Trust's assets are maintained either on
deposit with PSI or, for margin purposes, with the various exchanges on which
the Trust is permitted to trade. PSI credits the Trust monthly with 80% of the
interest it earns on the equity in these accounts and retains the remaining 20%.
The Trust, acting through its trading manager, executes over-the-counter,
spot, forward and/or option foreign exchange transactions with PSI. PSI then
engages in back-to-back trading with an affiliate, Prudential-Bache Global
Markets Inc. ('PBGM'). PBGM attempts to earn a profit on such transactions. PBGM
keeps its prices on foreign currency competitive with other interbank currency
trading desks. All over-the-counter currency transactions are conducted between
PSI and the Trust pursuant to a line of credit. PSI may require that collateral
be posted against the marked-to-market position of the Trust.
As of June 30, 1998, a non-U.S. affiliate of the Managing Owner owns 293
limited interests of the Trust.
C. Credit and Market Risk
Since the Trust's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk).
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level of volatility of interest rates, foreign
currency exchange rates or the market values of the contracts (or commodities
underlying the contracts) frequently result in changes in the Trust's unrealized
gain (loss) on open commodity positions reflected in the statements of financial
condition. The Trust's exposure to market risk is influenced by a number of
factors including the relationships among the contracts held by the Trust as
well as the liquidity of the markets in which the contracts are traded.
Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain
4
<PAGE>
<PAGE>
limitations) of the members of the exchanges is pledged to support the financial
integrity of the exchange. On the other hand, the Trust must rely solely on the
credit of its broker (PSI) with respect to forward transactions. The Trust
presents unrealized gains and losses on open forward positions as a net amount
in the statements of financial condition because it has a master netting
agreement with PSI.
The Managing Owner attempts to minimize both credit and market risks by
requiring the Trust's trading manager to abide by various trading limitations
and policies. The Managing Owner monitors compliance with these trading
limitations and policies which include, but are not limited to, executing and
clearing all trades with creditworthy counterparties (currently, PSI is the sole
counterparty or broker); limiting the amount of margin or premium required for
any one commodity or all commodities combined; and generally limiting
transactions to contracts which are traded in sufficient volume to permit the
taking and liquidating of positions. The Managing Owner may impose additional
restrictions (through modifications of such trading limitations and policies)
upon the trading activities of the trading manager as it, in good faith, deems
to be in the best interests of the Trust.
PSI, when acting as the Trust's futures commission merchant in accepting
orders for the purchase or sale of domestic futures and options contracts, is
required by Commodity Futures Trading Commission ('CFTC') regulations to
separately account for and segregate as belonging to the Trust all assets of the
Trust relating to domestic futures and options trading and not to commingle such
assets with other assets of PSI. At June 30, 1998 and December 31, 1997, such
segregated assets totalled $26,600,436 and $42,384,065, respectively. Part 30.7
of the CFTC regulations also requires PSI to secure assets of the Trust related
to foreign futures and options trading which totalled $11,860,366 and $6,852,627
at June 30, 1998 and December 31, 1997, respectively. There are no segregation
requirements for assets related to forward trading.
As of June 30, 1998, all open futures and options contracts mature within one
year.
As of June 30, 1998 and December 31, 1997, gross contract amounts of open
futures, forward and options contracts are:
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
Financial Futures and Options
Contracts:
Commitments to purchase $ 354,048,032 $ 522,213,105
Commitments to sell 54,012,651 7,592,575
Currency Futures and Options
Contracts:
Commitments to purchase 3,951,525 101,737
Commitments to sell 51,574,225 74,270,062
Other Futures and Options
Contracts:
Commitments to purchase 28,793,780 29,375,203
Commitments to sell 12,044,773 1,551,520
Other Forward Contracts:
Commitments to purchase 856,094 939,873
</TABLE>
The gross contract amounts represent the Trust's potential involvement in a
particular class of financial instrument (if it were to take or make delivery on
an underlying futures, forward or options contract). The gross contract amounts
significantly exceed the future cash requirements as the Trust intends to close
out open positions prior to settlement and thus is generally subject only to the
risk of loss arising from the change in the value of the contracts. As such, the
Trust considers the 'fair value' of its futures, forward and options contracts
to be the net unrealized gain or loss on the contracts (plus premiums on
options). Thus, the amount at risk associated with counterparty nonperformance
of all contracts is the net unrealized gain included in the statements of
financial condition. The market risk associated with the Trust's commitments to
purchase commodities is limited to the gross contract amounts involved, while
the market risk associated with its commitments to sell is unlimited since the
Trust's potential involvement is to make delivery of an underlying commodity at
the contract price; therefore, it must repurchase the contract at prevailing
market prices.
5
<PAGE>
<PAGE>
At June 30, 1998 and December 31, 1997, the fair values of futures, forward
and options contracts were:
<TABLE>
<CAPTION>
1998 1997
--------------------------- ---------------------------
Assets Liabilities Assets Liabilities
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 1,035,344 $ 17,825 $ 792,100 $ 240,225
Currencies 249,615 264,301 624,975 89
Other 359,960 711,430 713,857 1,004,794
Foreign exchanges
Financial 1,042,886 208,786 1,621,656 46,687
Other -- -- -- 3,123
Forward Contracts:
Other -- 856,094 -- 6,460
Options Contracts:
Domestic exchanges
Financial -- -- 68,002 --
Currencies -- -- 294,400 --
Foreign exchanges
Other 39,471 -- -- --
----------- ----------- ----------- -----------
$ 2,727,276 $ 2,058,436 $ 4,114,990 $ 1,301,378
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the six months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial 478,766 159,260 $ 322,595 $ 36,767
Currencies 800,884 207,134 464,986 89,317
Other 435,905 588,997 1,066,586 320,331
Foreign exchanges
Financial 1,658,368 84,994 223,717 183,524
Other -- 446 892,816 119,805
Forward Contracts:
Other 171,952 246,969 -- --
Options Contracts:
Domestic exchanges
Financial 94,429 -- -- --
Currencies 58,043 -- 3,514 --
Other -- -- 23,946 --
Foreign exchanges
Financial 10,287 -- -- --
Other 21,620 -- 17,598 --
---------- ----------- ---------- -----------
$3,730,254 $ 1,287,800 $3,015,758 $ 749,744
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
6
<PAGE>
<PAGE>
The following table presents the average fair value of futures, forward and
options contracts during the three months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 264,438 $ 170,600 $ 522,848 $ 36,352
Currencies 1,101,831 307,706 264,658 99,248
Other 275,898 552,576 1,266,241 366,970
Foreign exchanges
Financial 686,863 101,271 249,300 221,904
Other -- -- 1,121,717 164,374
Forward Contracts:
Other 128,810 430,580 -- --
Options Contracts:
Domestic exchanges
Financial 148,251 -- -- --
Currencies 27,975 -- 6,150 --
Other -- -- 41,906 --
Foreign exchanges
Financial 18,003 -- -- --
Other 37,836 -- 29,598 --
---------- ----------- ---------- -----------
$2,689,905 $ 1,562,733 $3,502,418 $ 888,848
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
The following tables present the Trust's trading revenues from futures,
forward and options contracts during the six and three months ended June 30,
1998 and 1997, respectively.
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $(1,839,083) $(1,018,970) $ (340,018) $(1,501,007)
Currencies (4,613,684) 2,751,048 (3,058,986) 1,737,758
Other (4,030,247) 1,542,195 (2,318,100) (2,342,032)
Foreign exchanges
Financial 5,129,006 (2,622,595) 233,490 (2,957,306)
Other -- 1,637,046 -- 589,155
Forward Contracts:
Other (1,099,926) -- (1,682,472) --
Options Contracts:
Domestic exchanges
Financial (890,181) 352,859 (746,521) (251)
Currencies (656,525) (24,474) (387,587) (24,474)
Other (4,940) (144,381) (4,940) (151,181)
Foreign exchanges
Financial (65,754) (14,941) (65,754) --
Other (18,002) (55,385) (3,083) (38,599)
------------ ------------ ------------ ------------
$(8,089,336) $ 2,402,402 $(8,373,971) $(4,687,937)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
D. Subsequent Event
During July 1998, Willowbridge Associates Inc. ceased to serve as a trading
manager to the Trust with regard to all trading programs with the exception of
the XLIM program, which represented approximately 50% of the Trust's assets. The
Trust is currently negotiating with other independent commodities trading
managers to trade those Trust assets previously traded by Willowbridge
Associates Inc.
7
<PAGE>
<PAGE>
WILLOWBRIDGE STRATEGIC TRUST
(a Delaware Business Trust)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Trust commenced operations on May 1, 1996 with gross proceeds of
$12,686,200 allocated to commodities trading. Additional Interests were offered
monthly at the then current net asset value per Interest until the continuous
offering period expired January 31, 1998. Additional contributions made during
the continuous offering period totalled $51,242,700.
At June 30, 1997, 100% of the Trust's net assets were allocated to
commodities trading. A significant portion of the net assets are held in cash
which is used as margin for the Trust's trading in commodities. Inasmuch as the
sole business of the Trust is to trade in commodities, the Trust continues to
own such liquid assets to be used as margin. PSI credits the Trust monthly with
80% of the interest it earns on the equity in these accounts and retains the
remaining 20%.
The commodities contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in commodity futures contract prices
during a single day by regulations referred to as 'daily limits.' During a
single day, no trades may be executed at prices beyond the daily limit. Once the
price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
neither be taken nor liquidated unless traders are willing to effect trades at
or within the limit. Commodity futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading. Such market
conditions could prevent the Trust from promptly liquidating its commodity
futures positions.
Since the Trust's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk). The Managing Owner attempts to minimize these risks
by requiring the Trust's trading manager to abide by various trading limitations
and policies. See Note C to the financial statements for a further discussion of
the credit and market risks associated with the Trust's futures, forward and
options contracts.
Redemptions of limited interests for the six months and three months ended
June 30, 1998 were $7,110,516 and $4,144,679, respectively. Redemptions by the
Managing Owner recorded for the six and three months ended June 30, 1998 were
$75,375 and $41,903, respectively. Redemptions of limited interests and general
interests recorded from commencement of operations, May 1, 1996, through June
30, 1998 were $18,433,588 and $75,375, respectively. Future redemptions will
impact the amount of funds available for investment in commodity contracts in
subsequent periods.
The Trust does not have, nor does it expect to have, any capital assets.
Results of Operations
The net asset value per Interest as of June 30, 1998 was $83.56 a decrease of
18.84% from the December 31, 1997 net asset value per Interest of $102.96.
The Trust's negative April performance resulted from losses in the currency,
financial, metal, energy, soft, index and grain sectors. Gains were achieved in
the meat sector. Trading in April began strong, but events in Japan drove
negative performance for the remainder of the month. Early gains were the result
of continuing trends which included advances in the U.S. dollar relative to
major currencies and rising G7 bond prices. Early in the month, the U.S. dollar
rose sharply against the Japanese yen. This followed Japan's removal of
restrictions on the expatriation of currency out of Japan and the release of a
study showing signs of weakness in the Japanese economy. As the month
progressed, several currency markets reversed with the U.S. dollar weakening,
accentuated by market intervention by the Bank of Japan over a holiday weekend.
In the financial sector, bond prices, particularly in the U.S., reversed causing
losses for the Trust in its U.S. Treasury, German, Italian Eurodollar and
British three-month bond positions. The Trust's silver positions experienced
losses as silver prices fell during the month on news that a major investor was
selling significant holdings. In the energy sector, natural gas prices reversed
and headed lower causing long positions to
8
<PAGE>
<PAGE>
decline in value. In the meat sector, live cattle positions were profitable,
partially offsetting losses for the Trust.
The Trust's negative May performance was primarily the result of losses in
the metal, grain, energy, meat and soft sectors. Gains were achieved in the
currency and financial sectors. In the metal sector, the Trust's long silver
positions incurred losses as speculation that silver prices would rise initially
appeared justified, but prices quickly fell as investors realized that there
would be no silver rally in the near term. Additionally, gold prices declined by
about $10 an ounce, adding to losses. In the grain sector, long corn positions
were unprofitable as prices fell on indications pointing toward decreased
demand. In addition, a decline in soybean oil prices led to losses for the
Trust's long positions. Energy sector prices fell throughout the month making
long positions, specifically in natural gas and unleaded gasoline, unprofitable.
Partially offsetting losses were profits in the currency sector. The Japanese
yen's steady decline to seven-year lows profited the Trust's short positions.
This drop was in response to investor fears that the worst is yet to come for
the Japanese economy. Financial sector positions profited as the Japanese
Government bond reached all-time highs. Positions in U.S. Treasuries and French
notional bonds recognized gains as well.
The Trust's negative June performance resulted from losses in the currency
and grain sectors. Gains were achieved in the financial, metal, energy, index
and soft sectors. Early in the month, a strong U.S. dollar, relative to the
Japanese yen and rising U.S. and international bond prices provided early gains.
However, U.S. Federal Reserve Bank intervention during the month forced price
reversals, resulting in a net loss in currency sector positions for the month.
In the financial sector, U.S. 30-year Treasury bond positions profited as prices
rose on continued expectations of low inflation, more moderate U.S. economic
growth and capital flows due to uncertain economic conditions in Asia. Profits
were also experienced in the metal sector, particularly in silver and copper.
Index sector positions in the S&P 500 gained as the index traded erratically
early in the month only to end the month on an uptrend.
Interest income is earned on the equity balances held at PSI and, therefore,
varies monthly according to interest rates, trading performance, contributions
and redemptions. Interest income increased by approximately $12,000 during the
six months ended June 30, 1998 versus 1997, but decreased by approximately
$93,000 during the three months ended June 30, 1998 versus 1997. These
fluctuations were largely the result of continually increasing asset levels due
to contributions made during 1997 and 1998 through January 31 when the
continuous offering period expired, offset by redemptions and poor trading
performance since April 1997.
Commissions are calculated on the Trust's net asset value at the beginning of
each month and, therefore, vary according to trading performance, contributions
and redemptions. Commissions increased by approximately $161,000 during the six
months ended June 30, 1998 as compared to 1997, but decreased by approximately
$136,000 during the three months ended June 30, 1998 as compared to 1997 for the
same reasons interest income fluctuated as discussed above.
All trading decisions for the Trust are made by Willowbridge Associates Inc.,
the trading manager. During July 1998, Willowbridge Associates Inc. ceased to
serve as a trading manager to the Trust with regard to all trading programs with
the exception of the XLIM program, which represented approximately 50% of the
Trust's assets. The Trust is currently negotiating with other independent
commodities trading managers to trade those Trust assets previously traded by
Willowbridge Associates Inc. Management fees are based on the Trust's net asset
value at the end of each month and, therefore, are affected by trading
performance, contributions and redemptions. Management fees increased by
approximately $33,000 during the six months ended June 30, 1998 as compared to
1997, but decreased by approximately $62,000 during the three months ended June
30, 1998 as compared to 1997 for the same reasons interest income fluctuated as
discussed above.
Incentive fees are based on the New High Net Trading Profits generated by the
trading manager, as defined in the Advisory Agreement between the Trust, the
Managing Owner and the trading manager. Incentive fees for the three months
ended March 31, 1997 were approximately $1,214,000 as a result of strong trading
performance during the first quarter; however, no incentive fees have been
earned since that date.
9
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against the Registrant or the Managing Owner
Item 2. Changes in Securities--None
Item 3. Defaults Upon Senior Securities--None
Item 4. Submission of Matters to a Vote of Security Holders--None
Item 5. Other Information--None
Item 6. (a) Exhibits--
3.1
and
4.1--Second Amended and Restated Declaration of Trust and Trust
Agreement of the Registrant dated as of December 14, 1995
(incorporated by reference to Exhibit 3.1 to 4.1 to the
Registrant's Registration Statement on Form S-1, File No.
33-80443, dated as of December 14, 1995)
4.2--Subscription Agreement (incorporated by reference to
Exhibit 4.2 to the Registrant's Registration Statement on
Form S-1, File No. 33-80443, dated as of December 14, 1995)
4.3--Request for Redemption (incorporated by reference to
Exhibit 4.3 to the Registrant's Registration
Statement on Form S-1, File No. 33-80443, dated as of
December 14, 1995)
27.1--Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--None
10
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WILLOWBRIDGE STRATEGIC TRUST
By: Prudential Securities Futures Management Inc.
A Delaware corporation, Managing Owner
By: /s/ Steven Carlino Date: August 13, 1998
----------------------------------------
Steven Carlino
Vice President
Chief Accounting Officer for the
Registrant
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Willowbridge Strategic Trust
and is qualified in its entirety by reference
to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0001005006
<NAME> Willowbridge Strategic Trust
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Jun-30-1998
<PERIOD-TYPE> 6-Mos
<CASH> 36,935,868
<SECURITIES> 668,840
<RECEIVABLES> 25,503
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 37,630,211
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 37,630,211
<CURRENT-LIABILITIES> 1,283,959
<BONDS> 0
0
0
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</TABLE>
